A prominent nonprofit crypto advocacy group is filing a lawsuit to challenge new reporting rules for decentralized finance (DeFi) brokers.
In a new press release, the Blockchain Association says the “midnight” decision by the Internal Revenue Service (IRS) and the Treasury Department to force DeFi protocols to follow the same reporting rules as securities brokers will disrupt the U.S. digital asset industry “ cripple” would impose illegal compliance requirements on developers.
Last week, the Treasury Department issued a press release on a new rule requiring DeFi brokers to report gross proceeds from the sale of their digital assets.
As Marisa Coppel, the firm’s general counsel, explained:
“The IRS and Treasury have exceeded their legal authority and expanded the definition of ‘broker’ to include DeFi trading front-end providers, even if they do not transact.”
Not only is this a violation of the privacy rights of individuals using decentralized technology, but it would also move all burgeoning technology offshore.
The Blockchain Association continues to stand by DeFi innovators and users and will continue…
